Will Not Open 'Symbolic' Factory

It's no secret that China is booming right now, especially when it comes to commercial airline orders. European planemaker Airbus is locked in a fierce battle for those orders with its American rival, Boeing... and you'd think Airbus gained a definite upperhand last week, when it announced plans to build a production facility in China.

But the head of Boeing's China operation says that's not the case... and furthermore, the planemaker has no plans to duplicate Airbus' plans for a Chinese production facility.

"We have no plans to set up an assembly line at this time," David Wang told The Associated Press at China's biggest air show in the southern city of Zhuhai. "We do not believe symbolic investments lead to good business partnerships."

Instead, Wang says, Boeing contributes greatly to China's economy through its relationships with Chinese parts suppliers, and joint ventures such as its partnership with Evergreen Aviation Technologies Corp. The Taipei-based company converts used 747 passenger planes into freighters.

Those partnerships -- worth $730 million over the past 20 years, according to Wang -- seem to be working. Boeing accounts for about 60 percent of the roughly 900 planes flying for Chinese airlines.

But Airbus is pushing to a bigger piece of that pie... particularly with its agreement last week to open a final assembly line in China for its A320 family of narrowbody aircraft. The facility will be Airbus' first production facility outside Europe.

As Aero-News reported, Airbus also won new orders for 150 A320s from Chinese carriers. As you might have guessed, those planes will be built at the Chinese plant... which makes one wonder just how "symbolic" that plant will prove to be...

FMI www.boeing.com, www.airbus.com, www.egat.com.tw/html/ENG/home.htm